I. Employee Retirement Plans – Defined Benefit Plans (Continued)

City Council · 2026-04-21 · agenda_item

This item concerns the City of West Melbourne's participation in the Florida Retirement System (FRS) and the Retiree Health Insurance Subsidy (HIS) Program. These are state-administered plans that provide retirement income and health insurance cost assistance to eligible former city employees. The city's participation in FRS is optional for certain entities, and this agenda item is a continuation of a discussion about these plans. The discussion involves understanding employee contribution rates, which are 3.00% of salary, and employer contribution rates that vary by employee class. The employer contribution rates for the FRS Pension Plan range from 22.03% to 33.24%, and for the HIS Program, they are 2.00%. This item is currently under review as a continued discussion. The scope of work involves financial analysis and administrative review related to these retirement and subsidy programs. This opportunity is early in the public process, allowing for businesses specializing in financial consulting, actuarial services, and government administration support to engage with the city before final decisions are made.

employee contribution rate

3.00 %

FRS Pension Plan employer contribution rate (Regular class)

14.04 %

HIS Program employer contribution rate (Regular class)

2.00 %

FRS Pension Plan employer contribution rate (Senior management service class)

33.24 %

HIS Program employer contribution rate (Senior management service class)

2.00 %

FRS Pension Plan employer contribution rate (DROP from FRS)

22.03 %

HIS Program employer contribution rate (DROP from FRS)

2.00 %

HIS Program minimum monthly payment

30 $

HIS Program maximum monthly payment

150 $